American Economics Thread


Gatekeeper

Captain
Registered Member
don't troll by posting what I "fall for", by telling me to "cheer up" earlier today
Relax, I was trolling you. I was engaging with you. All you got to say is you didn't fall for it. And I was wrong to suggest that. It's call discussion and engagement.

I can see I'm wasting my time in this endeavor!
 

Dolcevita

Senior Member
In theory, Jerome and his committee are not beholden to any political masters' wishes or whims.
Emphasis is on "theory", in reality what you said seems to be about right.
It was reported earlier that Trump instructed mnuchin to pressure FED and Powell to cut rate. So in theory you are correct but not in practice.
 

supercat

Junior Member
Federal Reserve cuts rates to zero and launches massive $700 billion quantitative easing program

The Federal Reserve, saying "the coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States," cut interest rates to near-zero on Sunday and launched a massive $700 billion quantitative easing program to shelter the economy from the effects of the virus.

Facing highly disrupted financial markets, the Fed also slashed the rate of emergency lending at the discount window for banks by 125 bps to 0.25%, and lengthened the term of loans to 90 days.

The new fed funds rate, used as a benchmark both for short-term lending for financial institutions and as a peg to many consume rates, will now be targeted at 0%-0.25%.

The Fed also cut reserve requirement ratios for thousands of banks to zero. In addition, in a global coordinated move by centrals banks, the Fed said the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank took action to enhance dollar liquidity around the world through existing dollar swap arrangements.

The banks lowered the rate on these swap line loans and extended the period for such loans. Fed Chairman Jerome Powell is scheduled to hold a press conference via telephone at 6 pm eastern time. The actions by the Fed appeared to be the largest single day set of moves the bank had ever taken, mirroring in many ways its efforts during the financial crisis that were rolled out over several months. Sunday's move includes multiple programs, rate cuts and QE, but all in a single day.

The quantitative easing will take the form of $500 billion of Treasurys and $200 billion of agency-backed mortgage securities. The Fed said the purchases will begin Monday with a $40 billion installment.

The Fed cut rates from the previous target range of 1% to 1.25% and said it would remain there "until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals."

Cleveland Fed President Loretta Mester was the lone no vote, preferring to set rates at 0.5% to 0.75%, which would have represented a 50 basis point, of half percentage point, reduction.

The Fed added in its statement that it "is prepared to use its full range of tools to support the flow of credit to households and businesses and thereby promote its maximum employment and price stability goals."

It appeared, though it was not entirely clear, that the meeting that took place will replace the regularly scheduled meeting of the Federal Open Market Committee.

The move follows several actions by the Fed over the past two weeks in which it enacted a 50 basis point emergency rate cut and expanded the overnight credit offering, or repo, for the financial system up to $1.5 trillion.
Yet the Dow futures still dropped 900 points.

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Image if The New York Stock Exchange is forced to close... The restaurants in NYC now can only accept take-out orders, no more eat-ins.
 

Jura

General
Relax, I was trolling you. I was engaging with you. All you got to say is you didn't fall for it. And I was wrong to suggest that. It's call discussion and engagement.

I can see I'm wasting my time in this endeavor!
I'm telling you to let me be
 

kwaigonegin

Colonel
All,

Since the Covid 19 thread is suspended I want to say something. If you're in the US, pls stock up on food in the next few days to last at least a couple of weeks. Hopefully my advise won't go unheeded. Stay safe SDF brothers! and don't forget to constantly wash your hands.
 

Jura

General
All,

Since the Covid 19 thread is suspended I want to say something. If you're in the US, pls stock up on food in the next few days to last at least a couple of weeks. Hopefully my advise won't go unheeded. Stay safe SDF brothers! and don't forget to constantly wash your hands.
you should read Mar 9, 2020 (LOL)
 

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